Should I switch to a prepayment meter to save money?
Prepayment meters can help some households control spend, but they’re not usually the cheapest way to pay for energy. Use this guide to understand the real costs, who it suits, and how to compare whole-of-market deals for your home with EnergyPlus.
- Learn when prepay can reduce debt risk (and when it costs more)
- Check if you can switch to credit meters or smart prepay
- Compare whole-of-market tariffs and apply in minutes
Free to use. Whole-of-market comparison for UK homes. Switching is subject to eligibility and supplier checks.
Compare energy deals before you decide on prepayment
If your goal is to save money on energy bills, switching tariff or supplier often delivers better value than moving to a traditional prepayment meter. Prepayment can be useful for budgeting, but in many cases it can come with higher unit rates than paying by monthly Direct Debit.
With EnergyPlus, you can compare whole-of-market home energy deals and see options that suit your payment preferences, including smart prepay where available. Fill in the form to get started—no obligation.
Quick answer
Switching to a prepayment meter doesn’t usually reduce your unit price. It can help you control spending, avoid running up debt, or clear existing arrears— but if you’re able to pay by Direct Debit, you’ll often access lower-priced tariffs.
Check deals for your postcode
Get whole-of-market results for your home. Switching eligibility depends on supplier checks.
Already on prepayment? You may still be able to switch supplier or move back to credit, depending on your meter type and any debt arrangement. Jump to switching options.
Is a prepayment meter cheaper than monthly billing?
In the UK, prepayment meters are often not the cheapest way to pay. Many suppliers price energy differently depending on how you pay— and Direct Debit has commonly been the lowest-cost payment method.
That said, the “cheapest” option depends on your circumstances: your tariff, region, meter type, and whether you’re using prepay to manage debt. The best approach is to compare like-for-like deals and consider total annual cost, not just the headline unit rate.
You pay in advance
Prepay can reduce surprise bills because you top up before you use energy. That can help with budgeting, but it doesn’t automatically lower prices.
Rates can be higher
Some tariffs have higher unit rates/standing charges on prepay. Even small differences can add up across a year’s usage.
Smart prepay is different
With a smart meter, prepay can mean app/online top-ups and better visibility. It may reduce hassle compared to legacy key/card meters.
If you’re mainly trying to lower your bills, start by comparing tariffs for your home and reviewing your payment method. If you’re trying to control spend or avoid debt, prepay could still be a good fit.
When switching to prepayment can make sense
A prepayment meter is primarily a payment management tool. For some households it offers peace of mind—especially if you prefer to track spend closely. Here are common reasons people consider prepay in the UK.
Prepay could suit you if…
- You want tighter control of spending week-to-week
- You’re worried about building up energy debt
- You’re managing arrears and have an agreed repayment rate
- You have irregular income and prefer topping up as you go
- You don’t want estimated bills (smart prepay can help)
Prepay may not be best if…
- You’re able to pay monthly by Direct Debit (often cheaper)
- You struggle to access top-up points or have limited mobility
- You’re at risk of self-disconnection (running out of credit)
- You have medical equipment that needs continuous power
- You’re in a rental where the landlord controls meter changes
If you’re unsure, comparing tariffs first can clarify whether you can save without changing meter type. Use the comparison form to check what’s available in your area.
How prepayment meters work (key, card and smart prepay)
Prepayment means you add credit before using energy. You’ll still pay a standing charge (if your tariff has one) and unit rates for what you use. The way you top up depends on your meter type.
| Type | How you top up | Pros | Watch-outs |
|---|---|---|---|
| Key meter (electricity) | Top up at PayPoint/Payzone and insert the key | Simple budgeting; visible remaining credit | Can be inconvenient; risk of running out; key can be lost |
| Card meter (gas) | Top up in-store and use a card at the meter | Familiar for many homes; helps manage spend | Less flexible than smart options; can require travel |
| Smart prepay | Often via app, online or phone; credit updates remotely | More convenient; better tracking; fewer top-up trips | Availability varies; features depend on supplier and smart meter setup |
Standing charges still apply
With most tariffs, the standing charge is taken daily from your credit—even if you use little energy. If you don’t top up for a while, it can reduce your remaining credit.
Costs and risks to consider before switching
Prepay can feel safer because you’re not building up a bill, but it can introduce other risks. Make sure you understand these points before you change meter type.
Self-disconnection
If you run out of credit, supply can stop. Some meters have emergency credit, but it must be repaid on your next top-up.
Debt deductions
If you have arrears, the supplier may take an agreed amount from each top-up to repay debt—reducing available credit for usage.
Top-up access
Legacy key/card meters rely on local top-up points. If getting to a shop is difficult, smart prepay or monthly billing may be easier.
If you’re vulnerable or at risk
If you rely on electricity for medical equipment, have young children at home, or are otherwise vulnerable, speak to your supplier about support options. You may be able to join the Priority Services Register (PSR) and access extra help.
Your switching options (without nasty surprises)
You typically have three routes: stay on your current meter and change tariff, move to smart prepay, or switch to a credit meter. What’s possible depends on your meter setup, tenancy, and any outstanding debt.
- Check your current tariff and payment method. If you can pay monthly by Direct Debit, compare those tariffs first—this is often where savings are found.
- Identify your meter type. Traditional key/card prepay works differently from smart prepay. Smart meters can offer easier top-ups and better tracking.
- Confirm any debt arrangement. If you’re repaying arrears via prepay, switching supplier may be limited until debt is cleared or transferred.
- Compare whole-of-market deals. Look at unit rates, standing charges, exit fees (if any), and whether the tariff supports your preferred payment method.
- Apply and keep evidence. Save screenshots/emails of your tariff and meter reads. If you move to a credit meter, ask about any fees and timelines.
Can I switch from prepay to a credit meter?
Often yes, but suppliers may run checks and may require any energy debt to be cleared first. If you rent, you may need landlord permission for meter changes. If you have a smart meter, some suppliers can switch modes remotely.
Can I switch supplier on prepayment?
Sometimes. Eligibility depends on the supplier and your circumstances, including whether you have outstanding debt and the type of prepay meter installed. Comparing is still worthwhile because you may be able to move to smart prepay or a credit meter.
Want a quick view of costs in your area? Use the form above to compare home energy tariffs.
Common mistakes that can cost you money
Comparing without standing charges
A lower unit rate can be offset by a higher standing charge. Always compare estimated annual cost for your usage.
Assuming prepay stops debt
Prepay helps avoid large bills, but standing charges and debt deductions can still reduce credit quickly if top-ups are missed.
Forgetting emergency credit
Emergency credit can keep you going, but it must be repaid. Plan your top-ups so you don’t get caught short.
If your priority is cheapest possible tariffs, check Direct Debit options too—then decide whether prepay’s budgeting benefits outweigh any price difference.
Prepayment meter FAQs
Will a prepayment meter lower my energy unit rate?
Not usually. The unit rate and standing charge depend on the tariff. In many cases, paying by monthly Direct Debit provides access to lower-priced tariffs. Use EnergyPlus comparison to check current options for your postcode.
Can I get a prepayment meter if I’m in debt?
Yes, prepay is sometimes used as part of a debt management plan, with deductions taken from top-ups. Always ask what deduction rate will apply and how it affects your weekly budget.
Is smart prepay better than a key/card meter?
Often, yes—mainly for convenience. Smart prepay can allow online/app top-ups and clearer tracking. Pricing still depends on the tariff, so compare costs as well as features.
Do I pay standing charges on prepayment?
Most tariffs include a standing charge. On prepay, it’s typically deducted daily from your credit. This is one reason credit can reduce even if you’re using little energy.
Can my landlord refuse a meter change?
If you rent, you may need permission for physical meter changes, and your tenancy agreement may include conditions. If you have a smart meter, switching between credit and prepay modes may be possible without replacing equipment.
What if I can’t top up (or I run out)?
Many meters offer emergency credit, but it must be repaid. If you’re struggling to keep supply on, contact your supplier as soon as possible to discuss support options. If you’re eligible, ask about joining the Priority Services Register.
Trusted by UK households comparing energy
People use comparison tools for one reason: clarity. Here’s what customers typically value when comparing tariffs through EnergyPlus.
“Clear results and no guesswork.”
I could see the standing charge and unit rate differences straight away, which helped me decide not to move to prepay.
Homeowner, West Midlands
“Helpful for budgeting.”
I compared smart prepay options and found a tariff that made topping up easier without overpaying.
Renter, Greater Manchester
“Quick to switch.”
The form was simple, and I understood my options before contacting any supplier.
Homeowner, Kent
Energy prices and availability vary by region and meter type. Comparing with your postcode is the fastest way to see realistic costs for your home.
Ready to check if switching could cut your bills?
Before moving to prepayment, compare whole-of-market tariffs for your home. You’ll see options available in your area, including payment-method differences.
- Whole-of-market comparison for UK households
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